1. Red line-this is the resistance line. This line will only be used for buy signals. One close above the red line and you can take a long(buy) entry on the open of the next bar.

2.Blue line-this is the support line. This line will only be used for sell signals. One close below the blue line and you can take a short(sell) entry on the open of the next bar.

3. White line-this line is your intial stop line and trailing stop line. Once you close above the red line or below the blue line then you use the white line as your stop. For ex: if you close one bar outside of the red line would be a buy signal at the open of the next bar. After entry your intial stop and trailing stop would be one close below the white line after entry.

4.Yellow/cyan line-these two lines are at the bottom of the chart. If the yellow line is above the cyan line the market is in an uptrend. If the yellow is below the cyan then the market is in a downtrend. The wider the lines are apart from each other then the stronger the trend in that direction. Also, you will notice a green horizontal line just near these lines. If both lines are above this green line(also called zero line) then the market is in a strong uptrend. If both lines are below the green horizontal line then the market is in a strong downtrend. In uptrends you like to see the yellow above the cyan and both lines above the green(zero line). This indicator validates the breakouts and breakdowns when you enter the market.

Here is a screen shot from March 20th, 2008:

Hope this helps my fellow traders. Please share any feedback or comments you may have.